How would the market for coffee be affected if the government charged an excise tax of $1.00 on each unit of coffee sold?

Question

Quizplus · Accepted Answer

An excise tax on each unit of coffee sold would increase the cost of supplying coffee. This would be represented graphically by a vertical shift up of the supply curve by the amount of the tax, indicating that at every price level, the cost to supply coffee is higher by $1.00. This does not directly affect the demand for coffee, but rather the cost of supplying it.

How Would the Market for Coffee Be Affected If the Government